Photo by Emre Can from Pexels
THE SCENARIO
Last time, I talked about a note that a friend wants to sell me. It's one of several, and another is very similar: 10-year, fully amortizing, 12% interest, $30,000 original balance.
The question: If I buy that note 22 months after it started and hold it until the very end, how much money in interest will I end up earning? I'll buy the note for the amount that's owed today (22 months after it started).
THE SOLUTION
This one has four parts, each of which is straightforward.
- Find the monthly payment
- Find the current amount owed
- Find the t... Read more...
